Thorn Group Limited: a classic stock for a tough economy

Thorn Group Limited (ASX: TGA) reported excellent half year results. Revenues and profits are growing quickly. It could be the classic stock for a tough economy, writes Dean Morel. Now is a good time to trade up to better quality companies. Speaking of which, Thorn Group Limited reported excellent half year results on Tuesday. The market was impressed by the revenue and profit growth and rewarded shareholders with a 7.5 cents or 4.6 per cent gain in a falling market. Revenue grew at 20% while profit did even better, leaping 30%. The operating leverage in…

You can continue reading this story now by entering your email below

You’ll also get all our free premium research including:

What’s next for bank shares, including which one to buy, and crucially, which ones to avoid.

How to cash in on some of the hottest stocks on the ASX.

Some of the best fully franked dividend shares to buy now.

Cheap and good small-cap stocks that are flying under the radar of the professionals.

Speaking of which, Thorn Group Limited reported excellent half year results on Tuesday. The market was impressed by the revenue and profit growth and rewarded shareholders with a 7.5 cents or 4.6 per cent gain in a falling market.

Revenue grew at 20% while profit did even better, leaping 30%. The operating leverage in Thorn’s business model continues to propel earnings growth faster than revenue growth.

Thorn’s ability to perform well under challenging market conditions demonstrates the strength of its long-term recurring revenue streams.

The real long term reward for shareholders will be in the resumption of a steadily rising dividend stream. This half’s 13 per cent increase in the dividend is a great start.

I reiterate what I said back in October when I put Thorn on our radar.

Thorn is a well-managed company [still] available at a good discount. It deserves a place on our radar. At the very least Thorn should be compared to your existing holdings.

If you are looking for more stocks on our radar, readers need look no further than The Motley Fool’s Top Stock For 2012. Click here now to request this special report, while it’s still free and available.

Motley Fool Investment Analyst Dean Morel does not have an interest in Thorn Group. The Motley Fool has a tough disclosure policy.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Free report names the 3 dividend shares The Motley Fool's crack team think you should buy now for 2019 and beyond.

Sign up now for instant access to your copy of this free report.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe at anytime. Please refer to our Financial Services Guide (FSG) for more information.